An Easier Path to Media Transparency
Thanks to P&G Chief Brand Officer Marc Pritchard’s now infamous speech, media transparency is one of the hottest topics today. His remarks put players across the industry — from media agencies to publishers to measurement suppliers spanning the multi-layered, “murky supply chain” — on notice to shape up and get more transparent … or risk losing the business of the world’s largest advertiser. According to Pritchard, “We’re all spending too much of our time and wasting investment on non-standard and faulty measurement. There are too many touches and too many players grading their own homework.”
It’s easy to see why organizations like P&G are fed up. The Association of National Advertisers estimates that today, only 30 to 40 cents of every advertising dollar is spent on working media. That means that up to 70 cents of every advertising dollar is going toward non-media expenses such as consulting fees, technology fees and targeting fees.
Much of the problem lies in the multi-tiered nature of today’s media supply chain, where transactions involve publishers, DSPs/ad networks and agencies. As a result of the different layers, advertisers not only lose visibility into the cost structure, but they also lack a detailed understanding of how their media is performing. They are left grappling with unanswered questions around operations and execution quality, such as:
- Are our ads reaching our target audiences?
- Are we targeting our audiences with the right messages?
- Are we balancing the contextual relevance of our media plan with scale?
- Are the ads hitting our target audiences with the appropriate frequency?
- Is our media mix working?
- Is our campaign delivering quality impressions — humans, viewable, brand-safe?
One approach some organizations are taking to deal with this lack of transparency is to skip the agency layer altogether and bring all programmatic buying of media in-house. While this undoubtedly enables brands to get more control of and enhanced visibility into activities, performance and costs, this approach is fraught with challenges. Many brand teams that start down this path quickly realize they’ve underestimated the time, resources, in-house expertise and organizational commitment needed to make it happen.
Data Ownership Delivers Transparency
Instead of an all-or-nothing approach, brands are increasingly turning to a hybrid model that provides them tighter control, while still tapping the media buying expertise of their agencies. This approach is centered on the brand’s ownership of data. Savvy brands have recognized the need for this core competency, and are focusing resources to enhance their sophistication on this front—by bringing data managers and analysts in house and employing tools that enable them to bring all media data together in one place, and store it centrally for reporting and analytical purposes.
Steven Wastie is the CMO of Origami Logic. He brings over 20 years of experience leading global marketing, product management and business development activities in highly competitive and high growth markets. Before joining Origami Logic, he was CMO at AppDynamics, the market leader in application intelligence and SaaS analytics solutions. He oversaw company messaging and positioning, as well as all outbound marketing and go-to-market activities during a period of explosive growth as the company grew from 250 to 1000 employees. Previously, Wastie served in executive roles in several category leaders and fast growth software innovators including Xirrus, Juniper Networks and Inktomi. He holds a BA in Business Studies and Marketing from London Metropolitan University in the UK.